Latest Developments:
Delta Air Lines (DAL) posted $15.67 billion in revenue for 3Q24, a 1.22% YoY growth, with net income rising 14.8%. The premium segment saw growth, with revenue up 4%, while domestic and international demand remained strong despite minor setbacks in some regions. DAL expects operating margins to expand in the next quarter.

Investment Case:
DAL is focused on enhancing its premium offerings, which continue to drive growth, with 26% revenue growth in premium services. The airline's domestic and international demand remains strong, and the company is well-positioned to continue benefitting from global disinflation and rising air travel demand.

Valuation:
A DCF analysis suggests an implied share price of $78.60, indicating a 20% upside. Continued debt reduction and margin expansion may drive substantial value, with the potential for DAL to begin share repurchases soon, bolstering shareholder returns.

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